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If the Frictional Rate of Unemployment Equals 3 Percent, the Structural

Question 18

Multiple Choice

If the frictional rate of unemployment equals 3 percent, the structural rate of unemployment equals 4 percent, and the cyclical rate of unemployment equals -2 percent, then the natural rate of unemployment equals:


A) 1%.
B) 5%.
C) 6%.
D) 7%.

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